2025 UK Electric Car Tax Benefits

Electric Car Tax Benefits UK: Why Your Next Company Car Should Be a Kia EV from Todds of Campsie

Electric car tax benefits UK are bigger than ever in 2025—especially if you choose a Kia EV from Todds of Campsie. Below you’ll find every incentive that matters to directors, finance managers and company-car drivers.

1. Electric Car Tax Benefits UK Wins (From 1 April 2025)

3 % Benefit-in-Kind (BiK) for zero-emission cars in 2025/26—rising slowly to 4 % in 26/27 and 5 % in 27/28.
£10 first-year Vehicle Excise Duty (VED), then the standard rate (£195 today).
100 % First-Year Allowance (FYA) on new electric cars and charge-points until 31 March 2026.
Employer-provided home or workplace charging electricity is tax-free.
7 p/mile Advisory Electricity Rate (AER) reimbursed to employees tax-free.
EVs remain exempt from ULEZ and every current UK Clean-Air Zone charge.

2. Company-Car Tax: How a Kia EV Beats Diesel

Tax Year	Kia EV BiK Rate	Typical Diesel BiK	Tax on Kia EV*	Tax on Diesel*	Annual Saving
2025/26	3 %	30 %	£540	£5,400	£4,860
2026/27	4 %	30 %	£720	£5,400	£4,680
2027/28	5 %	31 %	£900	£5,580	£4,680

*Assumes £45,000 P11D value and 40 % taxpayer.

Electric Car Tax Benefits UK

3. 100 % First-Year Allowance = Instant Corporation-Tax Relief

Buy a £47,000 Kia EV6 GT-Line through your limited company before 31 March 2026 and you can deduct the full cost from profits in year 1. For a 19 % corporation-tax payer that’s an £8,930 cash-flow boost compared with slow 18 % writing-down allowances.

4. Grants & Charging Sweeteners

Plug-in Van Grant: up to £5,000 off large electric vans—ideal for the incoming Kia PBV.
Workplace Charging Scheme: 75 % (max £350) per socket on up to 40 points.
Electricity supplied by the employer—at work or reimbursed for home charging—remains a non-taxable benefit.

5. Running-Cost Edge at Every Mile

Domestic charging draws only 5 % VAT, while petrol or diesel attracts fuel duty plus 20 % VAT. Using HMRC’s 7 p/mile AER, businesses can reimburse drivers tax-free and reclaim the VAT on business electricity.

Energy Source	Unit Cost	Cost for 10,000 mi**	VAT	CO₂ Emitted
Petrol	£1.55 / l	£2,600	20 %	2.4 t
Home Charge	15 p / kWh	£430	5 %	0 t
Public Rapid	65 p / kWh	£1,850	20 %	0 t

6. Clean-Air Zones & Congestion Charges: Drive Straight Through

Kia EVs breeze through London ULEZ, Birmingham CAZ, Bristol CAZ, Sheffield CAZ, Newcastle CAZ and all Scottish LEZs at zero cost. London’s £15 congestion charge stays off the bill until at least 24 December 2025, with discounts planned thereafter.

7. Act Before 31 March 2026

The 100 % FYA clock is ticking, and BiK will edge up each April. Ordering your Kia EV now locks in today’s 3 % BiK and full corporation-tax write-off while stock is available.

8. Why Todds of Campsie for Your Kia EV Fleet?

Specialist Business Team that translates HMRC jargon into real money.
Kia’s 7-Year Warranty—ideal for longer fleet cycles.
Range from Niro EV to EV9—every role, every budget.
Turn-key Charging Solutions handled in-house so you secure the Workplace Grant.
“Try Before You Buy” Demo Pool for SMEs in Northern Ireland.

Ready to save? Book a free tax-savings consultation at ToddsOfCampsie.com/EV-Tax or call 028 71811611 today.

Conclusion

Electric cars are no longer a green luxury – they are a tax-efficiency tool. By partnering with Todds of Campsie and choosing a Kia EV, businesses can harvest four-figure annual savings, employees pay pennies in BiK, and everyone drives into 2025-style low-carbon zones with zero hassle. Secure your allocation before the April 2026 changes land – your balance sheet (and the planet) will thank you. Unlock the electric car tax benefits uk to your business.

Disclaimer: These electric car tax benefits uk Tax rules correct to 25 June 2025. Incentives may change; always seek professional advice for your circumstances.